Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) announces today that it has signed a conditional commitment letter from the Canadian Imperial Bank of Commerce (“CIBC”) with respect to a multifaceted credit facility totalling USD $24.5 million.
The commitment includes:
- USD $10.0 million 364-Day Committed Revolving Credit;
- USD $10.0 million Term Acquisition Credit;
- USD $3.75 million Credit for Standby Letters of Credit; and
- USD $0.75 million Credit for Trading Room Contingent Liabilities.
“We begin 2015 with a plan to continue to grow our business both organically and by way of strategic acquisition,” said John Simmons, Chief Executive Officer. “These credit facilities, and working with CIBC, will be instrumental in supporting these growth plans through 2015 and beyond.”
The Company’s ability to draw on the 364-Day Committed Revolving Credit, Standby Letters of Credit and Credit for Trading Room Contingent Liabilities is subject to borrowing covenants and conditions typical to these credits. To access the Term Acquisition Credit, CIBC will require the review and approval of the specific acquisition transactions. Each of the credits have separately applicable interest rates.
As part of the agreement, the Company will pay CIBC a CAD $50,000 set up fee as well as monthly monitoring fees, annual fees and standby fees for the unused portions of the credits all of which are typical to these arrangements.
About Carmanah Technologies Corporation
Since its founding in 1996, Carmanah has become one of the most trusted names in solar technology, delivering reliable and cost-effective solar powered products and systems for industrial applications worldwide. To date, Carmanah's solutions for marine navigation, airfield ground lighting, aviation obstruction, roadway illumination, parking lot lighting, as well as on and off-grid power generation, have been successfully deployed in over 400,000 installations in 110 countries with proven performance in conditions ranging from desert heat to arctic cold.
In 2013, through shareholder led initiatives, the company was restructured under the leadership of CEO John Simmons, while the Company’s largest shareholder, Michael W. Sonnenfeldt, became non-executive Chairman. Carmanah’s current board members demonstrated their belief in Carmanah's future by being the largest investors in each financing since the restructuring. Now, as a group, the board owns the majority of Carmanah's issued and outstanding shares.
Carmanah Technologies Corporation:
Stuart Williams, (250) 380-0052
Chief Financial Officer/Corporate Secretary
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to the Company’s backlog and the ability to deliver these orders, and estimates of revenue for the period. For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.